You are in the process of purchasing an apartment building and have offered the seller a price of $850,000. Your bank has offered to provide a 20-year fixed-rate mortgage of $637,500, with a quoted rate of 4.85%.

a. What would the monthly payment be on this loan?

b. Assuming that you make the required payment amount every month for 6 years, what would the outstanding balance be at the end of that period?

c. Assume that you pay $6,500.00 per month for the first 72 months. What would the outstanding balance be after that period in this case?